Biz groups call for more transparent budget process, decry 'culture of patronage and dependency'

MANILA -- Business groups in the Philippines are calling on the government to make the process of making the budget more transparent. 

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In a statement, the businessmen noted that the 2025 budget was substantially changed by the bicameral committee. 

"They significantly reduced allocations for programmed healthcare, social services and education projects, by over P200 billion. In place of these programmed projects, the bicameral committee inserted local infrastructure projects and types of unconditional cash transfers which, we believe, promote a culture of patronage and dependency," they said.

"These types of programs are vulnerable to politicization and raise concerns of pork barrel practices, especially in light of the upcoming elections," they added.

The joint statement was issued by the Financial Executives Institute of the Philippines, Makati Business Club, Management Association of the Philippines, FinTech Alliance PH, Justice Reform Initiative, Philippine Business for Social Progress and theUP School of Economics Alumni Association.

They said that while they recognize the President’s veto of P26 billion of the P289 billion worth of Congressional insertions into the budget of the Department of Public Works and Highways (DPWH), the groups said the 2025 budget still does not meet the short and long term needs of Filipinos.

"Many key social services remain defunded," they lamented. 

The group called on the government to make the Congress' Bicameral Conference Committee more transparent.

"The records of the discussions must be released and made accessible to the public, to ensure transparency and accountability," they said.

They also asked that citizens be allowed to participate in the Development Budget Coordination Committee (DBCC), stressing that this will make sure that the budget "reflects the real needs of the people."

They also asked government to support conditional cash transfers, asking the Department of Social Welfare and Development (DSWD) to release a list of cash transfer beneficiaries per barangay.

"We urge the creation of institutional safeguards to control the use and allocation of unprogrammed funds," they said.

"Unprogrammed funds should serve its main purpose which is for emergency/unexpected expenses," they stressed.

They also urged the executive branch to consider the recommendation of former Senate President Frank Drilon to classify all Congress-introduced amendments in the 2025 budget as “For Later Release” (FLR), so that these amendments will not be used for electioneering.

Among the signatories of the document are the Financial Executives Institute of the Philippines, Management Association of the Philippines, and the Makati Business Club.